Shares of financial services firm Shriram Finance advanced over 5 per cent after the NBFC announced the sale of its housing finance arm, Shriram Housing Finance (SHF), to private equity major Warburg Pincus for Rs 4,630 crore. The company said it wants to focus on vehicle finance and small business lending.
The stock advanced 5.13 per cent to Rs 2,419 per equity share on the BSE and advanced over 5 per cent to Rs 2,417.85 apiece on the NSE.
“Warburg is committed to investing another Rs 1,000 crore in the 2011-incorporated Shriram Housing Finance (SHF) after the closure of the deal, which is expected by the end of this fiscal, in March 2025,” Shriram’s executive vice chairman Umesh Revankar told PTI.
SHF has grown at a compounded annual rate of over 50 per cent, Revankar added.
Shriram Finance owns 83.8 per cent of SHF, while 14.8 per cent is with PE player Valiant, and the remaining 1.4 per cent is with employees. Valiant is also divesting its full stake in the company.
Shriram Finance is one of India’s leading Non-Banking Financial Companies (NBFCs) that caters to over 84 lakh customers in the country offering commercial vehicle loans, two-wheeler loans, and Micro, Small and Medium Enterprises (MSME) financing.
In today session, Sensex opened 79.51 points, or 0.11 per cent lower at 72,696.70 while Nifty inched 8.90 points, or 0.04 per cent higher at 22,112.90. The frontline indices are trading marginally higher till noon.
-With inputs from PTI
© IE Online Media Services Pvt Ltd
First uploaded on: 14-05-2024 at 11:31 IST